The G7 and Australia agreed to set a “price ceiling” for russian oil
5.11.2022 - 11:40
The countries of the Group of Seven, as well as Australia, agreed to set a fixed maximum price for russian oil, rather than a floating one. The “ceiling” of prices will be determined by the end of the month.
The coalition (G7 and Australia) agreed that the price cap would be a fixed rate that would be reviewed from time to time, rather than a discount to the index. This was reported by Reuters with reference to officials familiar with the situation.
According to available information, the price cap “will increase market stability and also simplify the compliance process to minimize the burden on market participants.”
The lowest price has not yet been set, but should be determined in the coming weeks. The coalition partners agreed to regularly review the fixed price and change it as needed.
Representatives of the G7 governments conducted intensive negotiations on an unprecedented decision to set price limits for sea deliveries of russian oil. They should come into force on December 5.
The decision of the G7 countries should limit “oil profits” for russian federation, since the terrorist country uses the received funds to support its troops in Ukraine.
